Achieving the greatest return for the least amount of risk, relative to your risk profile, is our main objective.
Helping you construct your portfolio begins with your personal Investment Policy Statement (IPS). It is the lead document that outlines your portfolio’s investment parameters. It sets in place the financial guideposts or markers needed in helping you build and manage your portfolio, such as: the investment objectives, the risk tolerance, suitability, the income and liquidity needs, and any restrictions or constraint you may have. It is reviewed with you annually, or as needed as your personal situation evolves and changes.
There are four main themes in our style:
- Take on suitable risk
- Yield, yield, yield
- Analyze and choose from the best in class
Taking on the right amount of risk, suitable to your life vision and personal objectives is the single most important aspect in you managing your assets. Key to that objective is measuring the progress of the portfolio. This is done by measuring real returns and comparing ‘risk-adjusted returns’; that is to say, comparing your portfolio’s return relative to your risk tolerance.
In keeping with your risk tolerance, the very Centre Core holds the most stable and longest term asset or group of assets. It is the foundation from which your other assets build. Its relative weight to your overall asset base is inversely proportionate to the amount of risk you take on through your other assets. That is, if your risk tolerance is low, the weighting of the Centre Core ought to be high. Ideally, the Centre Core has very low volatility, is not correlated to the stock or bond markets and is tax efficient. It is the stabilizing force in your portfolio in what otherwise can be an uncertain financial marketplace. Also, it can increase your overall portfolio's return by way of efficient diversification.